Commission sales?

[Tom Bull]

We are thinking about putting some examples of our work in some area shops (some are interested in helping us sell our engraving, which is all custom one of a kind), but I don't know how to set up a compensation plan for the shop owner. Does anyone have any experience in something like this? What would be a reasonable commission for a $50.00 sale?

I am thinking about a point of sale display with some examples of work and brochures, but how does one tie a future sale back to the shop that created the interest? Maybe my whole concept is off. Any help will be greatly appreciated.

[Mike Null]

Tom

What you are describing is basically consignment. It is a practice which fails more than succeeds for one simple reason--the shop owner has no vested interest in selling it.

If you can get them to buy your merchandise that's another matter.

There have been other threads on consignment so a search may turn up more than you want to know.

Some of the other downsides are theft, damage and dust none of which the shop owner will bear responsibility for.

[Tom Bull]

Actually what I want is a little different in that I don't want to place merchandise to sell, I want to sell a service. The merchandise in place would just be there to show the quality of work. The shop owner is motivated by the interest she/he has already shown, and the fact they are promoting something unique that will set their shop apart from others. My quandry is in how to compensate them in a way that is fair to all concerned: me, the shopowner, and the actual engraving client. Thanks, Tom

[Craig Hogarth]

In this instance, I would give them a list of services and your fees. Let them determine the markup themselves.

[Joe Pelonio]

Consignment shops will not usually agree to any terms but their own, in most cases it's a high percentage of the sale price, like 40-50%. If you have a lot of items that will sell well but no storefront to show them off, it might be a good option, but your profit will be much lower.

I did this with stained glass, at a consignment only gallery, but once it all sold I stopped doing it due to the low profit.

I did get one referral from this, for a custom job, for which they took 10%.

[Dee Gallo]

Tom, I am an artist who has sold on consignment from time to time, in galleries and stores. It is not a great way to make money for your work because they charge anywhere from 15-40% to carry your work. It is great if you are targeting a certain group who frequent the store you use, but limiting as well.

If you just want to let people know you are there and what you can do, there are places which 1) have more traffic than one store might have, 2) are free and 3) will not look for future compensation. These places are public buildings like libraries, dentist/doctor offices/medical facilities, colleges/schools, and park/museums. There are also businesses that like to do displays as long as they don't have to pay, like banks, grocery stores, chamber of commerce storefront, bookstores. I've even seen displays at places like McDonalds and coffee shops. Upscale lunch places love to display artists. If you ask, they are more receptive than you think.

These are places beginning artisans commonly get their start showing work to get some publicity and you can show any type of work for relatively short periods (1-3 months at a time). By moving the show around, you get more exposure and the "oh I saw that before" factor, which starts to put you into the public psyche more solidly.

If you only want to display one or two things, target a place where your potential clients will go - such as a lumber yard, hardware store, car dealership, etc. where you will not be competing for business, but enhancing their uniqueness . These kinds of guys love to be the one who knows every esoteric connection around. Make a complete display package they can put on a counter or stand or you will get lost.

Rather than paying someone to improve THEIR store's reputation, you should benefit from displaying there.

[Darren Null]

Everything I've tried on commission has so far proved to be an expensive waste of time. On materials alone, I'm in the red...and that's before I even start on the time taken. After-the-fact commission revision; mislaid stock; alleged shoplifting or your stuff just sitting there...seen it all.

And of course, it's me eating the cost for all this.

What has worked better for me, is going to a selected business and just giving them a wow-piece to make the business look better (logo, that sort of thing). You're casting your bread upon the waters; it's a known one-off cost; and if anything results from it the commission is likely to be in the 10-15% range as opposed to 40-50%. Better yet; make your piece quite large and tuck your contact details tinily and tidily away in a corner somewhere.

Plywood, tile and mirror are all cheap enough.

Bonus businesses are where people are going to have time to look at your work. Restaurants, bars, and hotel lobbies are all good for my area...your mileage may vary.

[Tom Bull]

Thanks, once again smc is the best. I will consider all of this and put this wisdom to good use. We all know that what we do is impressive and if people see it there is invariably "WOW" that would look great as....Just have to get it in front of people and it really sells itself.

[George D Gabert]

Another method might be to bread man your product.

The customer buys the product at your price, You display the product, but you do not get paid until the part is sold. Usually you would service the display once a week, to keep the customer hopnest and he pays when the product is restocked. You get your money and they can mark up the product whatever they like. They are also more likely to protect the stock from theft.